W. D. GEHL/GEHL EMPLOYMENT AGREEMENT

                                     INDEX



                                                                         Page

SECTION  1.        EMPLOYMENT                                               1
SECTION  2.        TERM OF EMPLOYMENT                                       2
SECTION  3.        COMPENSATION                                             2
SECTION  4.        TERMINATION OF EMPLOYMENT                                2
SECTION  5.        CHANGE IN CONTROL                                        3
SECTION  6.        BENEFITS                                                 4
                   (i)     Retirement/Death Benefit                         4
                   (ii)    Bonus                                            4
                   (iii)   Split Dollar Life Insurance                      4
SECTION  7.        REIMBURSEMENT OF EXPENSES                                5
SECTION  8.        VACATION                                                 5
SECTION  9.        STOCK OPTION                                             5
SECTION 10.        ADDITIONAL UNDERTAKINGS OF EXECUTIVE;
                   NON-COMPETITION PROVISIONS                               5
SECTION 11.        ASSIGNS AND SUCCESSORS                                   6
SECTION 12.        CONSTRUCTION                                             6
SECTION 13.        NOTICES                                                  6
SECTION 14.        SEVERABILITY                                             7
Signatures                                                                  7
Exhibit A          BONUS ARRANGEMENT                                        8
<PAGE>

               WILLIAM D. GEHL/GEHL COMPANY EMPLOYMENT AGREEMENT

    AGREEMENT made by and between Gehl Company ("GEHL"), a Wisconsin
corporation with its principal place of business in West Bend, Wisconsin, and
William D. Gehl, ("Executive").

                                    RECITALS
    WHEREAS, GEHL wishes to retain the services of Executive as its President
and Chief Executive Officer and Executive desires to serve GEHL in that
capacity; 

    NOW, THEREFORE, in consideration of the mutual promises and agreements set
forth herein, the parties agree as follows:

    Section 1. Employment.  GEHL shall employ Executive and Executive shall
serve as the President and Chief Executive Officer of GEHL during the term of
employment set forth in Section 2 of this Agreement, and as such term shall be
extended as provided herein.  Executive shall report only to the Board of
Directors of GEHL, and his powers and authority and responsibilities shall be
superior to those of any other officer or employee of GEHL or of any
subsidiary thereof.  Executive agrees, subject to his election as such, to
serve as a Director, and as a member of any committee of the Board of
Directors of GEHL, during such term of employment.

    If at any time during the term of employment, the Board of Directors of
GEHL shall not reelect Executive as President and Chief Executive Officer of
GEHL or shall remove him from such office (other than for cause), or if at any
time during the term of employment Executive shall fail to be vested by GEHL
with the powers and authority of the President and Chief Executive Officer of
GEHL as described above, Executive shall have the right, by written notice to
GEHL, to terminate his services hereunder, effective as of the last day of the
month of receipt by GEHL of any such written notice, and Executive shall have
no further obligation under this Agreement.  Termination by Executive under
this Section 1 shall be treated as a termination of employment by GEHL other
than for cause and shall be governed by the provisions of Section 4 or 5 of
this Agreement, as applicable.

    Section 2. Term of Employment.  Executive's "term of employment," as this
phrase is used throughout this Agreement, shall be for the period commencing
July 1, 1995, and ending December 31, 1998.

    Section 3. Compensation.  GEHL shall pay or cause to be paid to Executive
during the term of employment a minimum base salary of Two Hundred Thousand
Dollars ($200,000.00) per annum, payable in twenty-six (26) equal installments
(subject to the appropriate withholding items).  This salary shall be reviewed
at least annually by the GEHL Board of Directors or a committee thereof and
increased or decreased in its discretion, subject to the minimum above.

    Section 4. Termination of Employment.  If, for any reason other than
cause, as defined below in this Section 4 or Executive's death or disability,
Executive's employment shall be terminated by GEHL before the term of
employment has been completed, Executive shall be entitled to receive, and
GEHL shall be obligated to pay, his full base salary set forth in Section 3
above as in effect immediately prior to such termination, for one (1) full
year from date of termination.  During such year, Executive shall also
continue to participate in all group welfare benefit plans and programs of
GEHL referred to in the first sentence of Section 6 hereof to the extent that
such continued participation is possible under the general terms and
provisions of such plans and programs.  In the event that Executive's
continued participation in any such plans and programs is barred, and in lieu
thereof, Executive shall be entitled to receive for the above period an amount
equal to the sum of the average annual contributions, payments, credits, or
allocations made by GEHL to him, to his account, or on his behalf over the
three (3) fiscal years (or fraction thereof) of GEHL preceding the termination
of his employment under such plans and programs from which his continued
participation is barred.

    Termination by GEHL for "cause" shall mean termination by action of the
GEHL Board of Directors because of the failure of Executive to fulfill his
obligations under this Agreement or because of serious willful misconduct by
Executive in respect of his obligations under this Agreement, as, for example,
the commission by Executive of a felony or the perpetration by Executive of a
common-law fraud against GEHL or any major material action (i.e., not
procedural or operational differences) taken against the expressed directive
of the Board.

    If Executive's employment is terminated by Executive, as a result of
Executive's death or disability, or by GEHL for cause, Executive's base salary
shall terminate on such date, and Executive's participation in GEHL's fringe
benefit plans shall terminate in accordance with their terms.

    Section 5. Change in Control.  In the event a change in control, as
defined below, occurs during the term of Executive's employment under this
Agreement and thereafter Executive's employment shall be terminated by GEHL
without cause (as defined in Section 4) before the term of employment has been
completed, Executive shall be entitled to the continuation of base salary and
fringe benefits pursuant to the first paragraph of Section 4 for two (2) full
years from the date of termination.  "Change in Control," for the purposes of
this Agreement, shall be defined as one of the following:

    (i)     securities of GEHL representing 25% or more of the combined voting
    power of GEHL's then outstanding voting securities are acquired pursuant
    to a tender offer or an exchange offer; or

    (ii)    the shareholders of GEHL approve a merger or consolidation of GEHL
    with any other corporation as a result of which less than fifty percent
    (50%) of the outstanding voting securities of the surviving or resulting
    entity are owned by the former shareholders of GEHL (other than a
    shareholder who is an "affiliate," as defined under rules promulgated
    under the Securities Act of 1933, as amended, of any party to such
    consolidation or merger); or

    (iii)   the shareholders of GEHL approve the sale of substantially all of
    GEHL's assets to a corporation which is not a wholly-owned subsidiary of
    GEHL; or

    (iv)    any person becomes the "beneficial owner," as defined under rules
    promulgated under the Securities Exchange Act of 1934, as amended,
    directly or indirectly, of securities of GEHL representing twenty-five
    percent (25%) or more of the combined voting power of GEHL's then
    outstanding securities the effect of which (as determined by the Board) is
    to take over control of GEHL; or

    (v)     during any period of two consecutive years, individuals who, at the
    beginning of such period, constituted the Board of Directors of GEHL
    cease, for any reason, to constitute at least a majority thereof, unless
    the election or nomination for election of each new director was approved
    by the vote of at least two-thirds of the directors then still in office
    who were directors at the beginning of the period.

    Section 6. Benefits.  Executive shall be entitled to participate in any
group insurance, hospitalization, medical, health and accident, disability, or
similar plan or program of GEHL now existing or established hereafter to the
extent that he is eligible under the general provisions thereof.

    Furthermore, Executive shall be entitled to other payments, in addition to
the base salary above, as provided below:

    (i)     Retirement/Death Benefit.  The Supplemental Retirement Benefit
    Agreement between Executive and GEHL shall dictate the Retirement/Death
    benefits other than those provided under the employee benefit plans
    generally available to all salaried employees.  Such Supplemental
    Retirement Benefit Agreement is specifically referenced and made a part
    hereof.

    (ii)    Bonus.  Executive shall be entitled to an annual cash  bonus as
    calculated in accordance with the attached Exhibit A in the event the
    Executive is employed with GEHL on the last day of the applicable calendar
    year.  Notwithstanding the foregoing, in the event Executive's employment
    is terminated during the applicable year as a result of death or
    disability or by GEHL for any reason other than cause as defined in
    Section 4 hereof, Executive shall be entitled to a pro rata portion of the
    bonus which would otherwise have been payable for such calendar year of
    termination.  The pro rata portion shall be equal to the number of
    completed months in the calendar year through the date of termination
    divided by twelve (12).

    (iii)   Split Dollar Life Insurance.  Executive, as the insured, a trust
    for the benefit of Executive's family (the "Trust"), as the owner, and
    GEHL shall enter into the Split Dollar Insurance Agreement regarding the
    purchase of a $1 million whole life insurance policy.  The Trust shall
    execute a collateral assignment of such policy to GEHL to secure its
    interest therein as provided in the Split Dollar Insurance Agreement. 
    Said agreement is specifically referenced and made a part hereof.

    Section 7. Reimbursement of Expenses.  GEHL shall pay or reimburse
Executive for all reasonable travel and other expenses in accordance with GEHL
policy.  GEHL further agrees to furnish Executive with a private office and a
private secretary and such other assistance and accommodations as shall be
suitable to the character of Executive's position with GEHL and adequate to
the performance of his duties hereunder.

    Section 8. Vacation.  Executive shall be entitled to four (4) weeks paid
vacation each year.

    Section 9. Stock Option.  Concurrent with the execution of this Agreement,
Executive and GEHL shall enter into a Stock Option Agreement, specifically
referenced herein and made a part hereof, wherein Executive is granted as of
July 19, 1995 an option to purchase 100,000 shares of GEHL common stock under
the 1995 Stock Option Plan.

    Section 10.    Additional Undertakings of Executive; Non-competition
Provisions.  Executive agrees that during the term of employment under this
Agreement he will apply on a full-time basis (allowing for usual vacations and
sick leave) all of his skill and experience to the performance of his duties
in such employment.  It is understood that Executive may have other business
investments and participate in other business ventures which may, from time to
time, require minor portions of his time, but which shall not interfere or be
inconsistent with his duties hereunder.  Executive agrees that during the term
of employment and for one (1) year thereafter, or, in the event of termination
of his employment by GEHL for cause (as defined in Section 4 above) for two
(2) years after such termination, Executive will not, without the prior
written approval of the Board of Directors of GEHL, become an owner, officer,
employee, agent, partner, or director of any business enterprise in
substantial direct competition (as defined below) with GEHL or any subsidiary
of GEHL as the business of GEHL or any subsidiary of GEHL may be constituted
during the term of employment or at the termination thereof.  If Executive's
employment is terminated by GEHL other than for cause (as defined in Section 4
above), he will not be subject to any restrictions under this Section 10.

    If Executive's employment by GEHL is terminated by him (other than under
the circumstances set forth in Section 1 above), in breach of this Agreement
during the term of employment, Executive shall not, for a two (2)-year period
following such termination, become an owner, officer, employee, agent,
partner, or director of any business enterprise in substantial direct
competition (as defined below) with GEHL or any subsidiary of GEHL as the
business of GEHL or any subsidiary of GEHL may be constituted at the time of
such termination.

    For the purposes of this Section 10, a business enterprise with which
Executive becomes associated as an owner, officer, employee, agent, partner or
director, shall be considered in "substantial direct competition," if, during
a year (adjusted for fractions of a year in respect of a new enterprise) when
such competition is prohibited, its sales of any product or service sold by
GEHL or any subsidiary of GEHL amount to more than either ten percent (10%) of
its (new enterprise) total sales or Ten Million ($10,000,000.00) Dollars.

    Section 11.    Assigns and Successors.  The rights and obligations of GEHL
under this Agreement shall inure to the benefit of and shall be binding upon
the successors and assigns of GEHL.

    Section 12.    Construction.  This Agreement shall be construed under the
laws of the State of Wisconsin.  Section headings are for convenience only and
shall not be considered a part of the terms and provisions of this Agreement.

    Section 13.    Notices.  All notices under this Agreement shall be in
writing and shall be deemed effective when delivered in person (in GEHL's
case, to its Secretary) or forty-eight (48) hours after deposit thereof in the
U.S. mails, postage prepaid, addressed, in the case of Executive, to his last
known address as carried on the personnel records of GEHL and, in the case of
GEHL, to the corporate headquarters, attention of the Secretary, or to such
other address as the party to be notified may specify by notice to the other
party.

    Section 14.    Severability.  Should it be determined that one or more of
the clauses of this Agreement is (are) found to be unenforceable, illegal,
contrary to public policy, etc., this Agreement remains in full force and
effect except for the unenforceable, illegal, or contrary to public policy
provisions.

    IN WITNESS WHEREOF, GEHL COMPANY has caused this Agreement to be executed
by its duly authorized officers, and Executive has hereunto set his hand, all
as of the 15th day of December, 1995.

Attest:                            GEHL COMPANY

M. Mulcahy                            Arthur W. Nesbitt
Its:  Secretary                       Its:  Chairman of the Board


M. Mulcahy
Witness as to William D. Gehl         William D. Gehl, Executive